MGT101 Midterm Past Paper Fall 2005 Session 3

MID TERM EXAMINATION SEMESTER FALL 2005 MGT101-FINANCIAL ACCOUNTING(Paper 3)

INSTRUCTIONS:

• All questions are compulsory.
• This exam consists of 5 Multiple Choice Questions (MCQ’s) carrying 2 marks each, 4 Short

questions carrying 5 marks each and 1 Descriptive questions carrying 10 marks.

• You are required to show all the working of short questions as well as Descriptive question.
• This examination is closed book, closed notes, closed neighbors.
• You may wish to pace yourself with your own watch, but the Supervisor will be the official

timekeeper of the test.

• Failure to comply with the Supervisor’s directions will result in your test being cancelled. Please

comply with supervisor’s directions to avoid any unpleasant event. ID Question Total Marks

Q1. Marks: 2

Which of the following would not be categorized as current assets?

1. Stocks
2. Debtors
3. Plant and Machinery
4. Cash in hand

Q2. Marks: 2

Pak Motors buys a stock worth Rs. 30,000 on credit on the last day of his accounting period and includes these items in Closing Stock. Which of the following figures in the Accounts would be increased by Rs. 30,000?

1. Cost of Sales
2. Working Capital
3. Gross Profit
4. Current Assets.

Q3. Marks: 2

An account titled Unearned Fees would be classified as which of the following?

1. Asset account
2. Liability account
3. Revenue account
4. Expense account

Q4. Marks: 2

Asset depreciation is calculated to which of the nearest time periods?

1. Day
2. Week
3. Month
4. None of the Given Option

Q5. Marks: 2

Capital expenditures are:

1. The extra Capital paid in by the proprietor
2. The cost of running the business on day to day basis
3. Money spend on buying Assets or adding value to them
4. Money spent on selling Fixed Assets.